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Consolidated Hallmark’s net income rises 215.26% in Q1 2014

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IMAGE: Consolidated Hallmark Insurance plc »


In what could be perceived as a spectacular success, Consolidated Hallmark Insurance first quarter (Q1) 2014 net income surged 215.26 percent, a result that means shareholders of the company should await increased returns on their investment.

For the first three months through March 2014, the Nigeria insurer’s profit after tax (PAT) increased by 215.26 percent to N364 million from N115.45 million the same period of the corresponding year (Q1) 2013.

Earnings per share (EPS) increased by 216.14 percent to 6.07k in Q1 2014 from 1.92k as of Q1 2013.

Gross premium written increased by 51.61 percent to N1.44 billion in Q1 2014, as against N949.80 million as of Q1 2013, despite environmental challenges bedevilling the insurance sector.

The company utilised underwriting capacity effectively as gross premium was up by 29.08 percent to N1.10 billion compared with 852.15 million the preceding year.

Underwriting profit was also in an upside position as it increased by 78.75 percent to N714.55 million, as against N399.73 million the preceding year.

Operating expenses, which comprise of claims, underwriting and management expenses, were down slightly by 3.08 percent to N750.96 million in Q1 2014, compared with N774.85 million as of Q1 2013.

Consolidated Hallmark is in a position to spike performances as the insurance industry in African largest and populous country Nigeria will be driven by contributions from automobile, oil and gas, and housing sector in the future.

Furthermore, the country’s rising population and the burgeoning middle-class is another opportunity analysts say will catapult and put the Nigerian insurer on the trajectory of growth.

In order to re-position the sector for a better performance and increase its contribution to the country’s economy, the ‘No Premium, No Cover policy’ was formulated.

This is a section of the 2003 Insurance Act that stipulates that premiums must be paid for before an insurer can incept cover. This regulation was enforced by the regulator – NAICOM – with effect from January 1, 2013.

Consolidated Hallmark’s total assets reduced slightly by 1.03 percent to N6.67 billion as against N6.74 billion the same period of the corresponding year (Q1) 2013.

Shareholders’ funds in the review period fell by 6.74 percent to N4.01 billion in Q1 2014, compared with N4.30 billion as of Q1 2013.

Consolidated Hallmark is a general business and special risks insurance underwriting firm fully capitalised in line with statutory requirements of the industry regulatory body – the NAICOM, according to information on the company’s website.

The company said in the statement on its website that it had executed big ticket transactions in aviation, oil and gas, marine cargo and hull business and other non-life insurance underwriting, including motor, fire and special perils, goods-in-transit and engineering insurance, among others.

Consolidated Hallmark’s share price closed at N0.50 October 21, on the floor NSE, while market capitalisation was N6.0 billion.

Article Credit: Businessdayonline

Updated 4 Years ago

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Tags:     Consolidated Hallmark Insurance     Nigeria     NAICOM